Morningstar Magazine - April/May 2018 - 79

FUND FLOWS SPOTLIGHT

U.S. Investors Turn to International-Equity Funds
Most of the top 10 fund companies enjoyed
healthy flows in January. (Only Franklin Templeton
and J.P. Morgan had outflows.) State Street
saw a second month of double-digit billion-dollar
flows and almost caught up with Vanguard
in terms of passive flows. Its flagship ETF,

were American Funds Tax-Exempt Bond AFTEX and
American Funds Europacific Growth AEPGX.

SPDR S&P 500 SPY, attracted the majority of
the incoming money. On the active side,
American Funds rallied in January with a $7.9
billion inflow, reflecting a trend of active
flows to municipal bonds and foreign stocks.
Its two funds with the largest inflows

Alina Lamy is a senior analyst in Morningstar's
quantitative research group.

Monthly Flows into the Top 10 Fund Families
Vanguard
State Street
PIMCO
American Funds
T. Rowe Price
J.P. Morgan
Fidelity
Franklin Templeton
BlackRock/iShares
DFA

$120B
100
80
60
40
20
0
-20
02/2017

03/2017

04/2017

05/2017

06/2017

07/2017

08/2017

09/2017

10/2017

11/2017

12/2017

01/2018

Source: Morningstar. Data as of 01/31/2018.

Active Versus Passive Fund Strategies The percentage of U.S. actively managed funds that outperformed their respective Morningstar Style Index.
Index Returns (02/28/2018)

54.3%

6.8

35.9%

11.0

35.6%

21.1

89.6%

-0.4

61.7%

7.0

43.4%

19.3

Value

Core

Growth

7.7%

10.1

11.7%

11.1

23.3%

13.3

8.2%

9.8

30.7%

8.0

49.7%

8.8

71.4%

5.8

46.5%

7.6

44.2%

9.2

Value

Core

Growth

44.2%

12.0

7.6%

15.0

13.7%

17.6

2.3%

14.4

20.7%

13.2

38.9%

13.4

Mid

30.6

50.5%

10.4

34.9%

11.9

41.4%

13.2

Small

21.1%

Large

14.9

Mid

59.3%

Small

10.0

Large

59.0%

5-Year

Mid

3-Year

Small

1-Year

p < 20% p 20 to 40% p > 40%

Value

Core

Large

Percentage of Actively Managed Funds Outperforming Index:

Growth

global.morningstar.com/Morningstarmagazine

79


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